The primary purpose of the Truth-in-Lending Act is to disclose to consumers the reason(s) why they are denied credit when applied for in credit transactions.

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The primary purpose of the Truth-in-Lending Act is to promote the informed use of credit by requiring lenders to disclose key terms and costs of credit, such as the annual percentage rate (APR), finance charges, and other related fees, to consumers before they enter into a credit agreement. It is not specifically meant to disclose the reason for credit denial. However, under the Equal Credit Opportunity Act, lenders are required to disclose the reasons for credit denial to applicants upon request.

The Primary Purpose of the Truth-In-Lending Act Is to Disclose